Orion announces $6.2 million LED lighting contract, shares jump

Shares of Orion Energy Systems Inc. jumped Thursday after the company said it has won a $6.2 million contract to retrofit the factory of an undisclosed automobile manufacturer with LED lighting fixtures.

The Manitowoc company said the auto plant will replace 465-watt lights with 173-watt light-emitting diode fixtures.

The company previously announced a $2.4 million order to retrofit an automotive assembly plant in Canada.

“We are pleased to announce our continuing partnership with this customer to provide facility upgrdades for another of their manufacturing plants,” said John Scribante, chief executive officer, in a statement.

The energy savings from the new contract are expected to reduce energy use by 327.5 million kilowatt-hours, and cut greenhouse gas emissions by more than 200,000 tons, according to Orion.

Orion has invested in what it sees as a market shift toward greater acceptance and installation of LED lighting.

The company bought Harris LED of Florida last year and LED lighting sales totaled about $2.5 million, or 21% of Orion’s lighting sales in the most recent quarter. That’s up from $1.1 million, or 7% of all lighting sales, in the April-June quarter of 2013.

“We believe LED products will be the new driver of our company’s sales in the coming years,” said Scott Jensen, chief financial officer, during an investor conference call last month.

The company's shares were trading around $6 a share, up about 20%, Thursday afternoon. The shares have traded between $3.39 and $8.11 over the past year.

About Thomas Content

Thomas Content covers energy, clean technology and sustainable business. A series he co-wrote on energy and climate change won top honors in 2008 from the National Press Foundation.

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